Sacramento daily record-union., 1887-08-06
CROSS.EXAMiNING.
The Railroad Commissioners Still Oues
tlonipg Senator Stanford

SAN Francisco, August 5th.-To-day the Fed
eral Railroad Commission of inquiry into the
affairs of the Central Pacific Railroad Company
resumed the cross-examinaion of Governor
Stanford.
Commissioner Anderson catechised him as
to his interest in the corporations attached
now or heretofore attached to the Central Pacific
Company. He said the list of corporations al
ready handed in was made up by his Secretary,
and was, he supposed, correct He had no in
terest in the Colorado Steam Navigation Com
pany, ana never had any interest IN the Oak
land ferries, except such as was connected with
the Central Pacific Company. The express
business in this State is mostly done by Wells,
Fargo q Co. That company has no exclusive
privileges, but does most of the business.
hr. Anderson asked concerning the contract
made with Wells. Fargo & Co. and the issuance
OF stock TO Stanford, huntington Hopkins and
others. The witness said at one time the Central
Pacific Company organized an express company
OF its own. and In consideration of relinquish-
ing that project and extending all the necessary
privileges to Wells, Fargo d Co., that company
increased Its capital and issued some stock to
the Genital Pacific Company and some TO him
self and associates He could not remember
the details of this operation, and referred Mr..
Anderson TO the books of the company.
Mr.. Anderson-Will that contract show the
details of the arrangement between Wells Fargo
u Co, yourself and your associatas7
Senaor Stanford-I don't know. / think
however. ii will be easier for you to obtain the
information from the express company or some
of our Secretaries.
MI. Anoerson-Dld you get million and a
hall OF express stock?
Senator stanford-I cannot remember:
Mr. Anderson-In the Robinson case it is al
legged that tn the 1 express company watered its
STOCK 10 sl2, 600 900 when this consolidation took
place and divided the increase among yourself.
Huntington & Hopkins.
Senator Stanford-You are now asking for In
formation cannot give. am willing to give
you all the time can, but do not want to be
questioned upon statements made in blackmail-
ing lawsuits when our books and employees are
available to ascertain the truth. II is not fair,
and is a waste OF time.
Mr.. Litt'er-You had an express company of
your own. which was consolidated with Wells,
Fargo Il Coz
Senator Stanford-Yes sir
Mr.. Littler-And you went out of business7
Senator Stanford-Yes; we gave up our bnsi-
ness and turned its privileges over to the other
corporation. In that transaction the Central
the details of the transfer either from the of
ncers OF the express company or from our books
Ihe witness was asked regarding the iorma-
ton of the Occidental and Oriental steamship
Company. and said that corporation was formed
To head off the Pacific Mail, which was supposed
TO be about to divert the China and Japan trade
TO the lsthmus. The enterprise was losing
one. 1t cost Mt first about 500, 900 Il year above
receipts to operate the line, but the Central Pa
citc Company thought it would pay to meet
this loss and ii was done. The enterprise was
inaugurated to protect the Central Pacific, and
he thought had well suoserved its purpose. For
the pro-rating rates and freight arrangements
with the Central Pacific, he referred to the sub
ordinate officers of the company. AS President
OF the Central Pacific and President of the 0cci-
dental and Oriental, he, of course was response
bic tor all arrangements between the two cor
Pordtions. By the Oriental line San Francisco
has been saved great loss of trade.
Being asked concerning the Dutch Flat toll
road which d. ". Strong charged had been
built by the Central Pacific and the tolls
pocketed by Stanford Huntington and Crocker,
the witness said this road was constructed by
company entirely separate from the Central Pa
cine, Tolls were collected but the road never
paid for itself. As financial operation it was
failure. The Central Pacific used the road 10
haul its merchandise over the mountains and
never paid cent. Thus it enjoyed the advant-
age OF the road tor the cost OF its transportation
would have been greatly increased had the
road not been in existence. The cost of con-
structing the road was not charged 10 the Cen
trail Pacific Company, but should have been, and
the railroad never had anything to do with the
toll-road, except to use it for nothing.
Mr. Andersop-Then you and your associ-
ates did not make So, 10000 out of the toll
road2
Senator Stanford-No, sir we made nothing
out of it. II never paid for its construction.
The witness again referred TO the basis of Mr..
Anderson's questions, aud obe tea to being cat
echised as to such wild statements as this about
the toll-road. " | have no desire" he said, I" 10
instruct the Commission as to It's conduct, but
submit that, being composed of lawyers, II
ought TO enforce the ordinary rules of evidence.
No such testimony as this would ever be admit
ted in Court of justice. The basis of your
questions Is that we have robbed the Central
Pacific Railroad Company. Now submit that
you ought to have some evidence of that before
you ask me to disprove It, deny emphatically
that anybody ever robbed the Central Pacific
We have always done the best we could for the
road, and there is no transaction re ,orded in
our books which will show the contrary. Not a
dollar has ever been paid out or diverted to any
corporation. AS for the things upon which you
base your questions / don't consider that they
affect, or ever have affected, my character
among those who know me. What the newspa-
pers say am not responsible for. Why, / was
once charged with being in league with the
bIInko sharDs that Travelled over our road and
with dividing their earnings for the privileges
extended to them"
This was received with some merriment, and
Mr. Anderson explained that he had no inten-
tion of rejecting on the witness but wished to
give him an opportunity TO explain Senator
stanford said he had no desire to plain such
statements. From this the examination went
TO other subjects-the effect Of the Interstate
Commerce law upon the business of the Central
Pacific, the effect of the competition by sea,
whether the witness was ever interested In the
Pacific Nail Steamship Company, and his opin-
as to the future of the railroad He said, in his
opinion, the earning power OF the Central Pa
cifc for the future would depend more upon its
local busi ess than upon the through traffic, in
which there was now fierce competition Being
asked if there did not large amount of mate
rial for the construction of the Southern Pacific
pass over the Central Pacific, and what were
the rates charged. and was large amount
passed over the line unchanged? Witness re-
piled :
q don't think there was. The books viii
show what was paid. l want 10 say right here
that the relations between the Central Pacific
and the Southern Pacific were as one party to
another
Regarding the land grant of the Central Ps-
citc and southern Pacific Companies. the wit
ness outlined the policy which had governed
the sales He said he had purchased some 70
fill ont the Gridley and Fina ranches. for
which he had paid the company 81 80 per
acre. This was mostly what Is known as
sheep" land. He had since given all this
land TO endow the Palo Alto University, and
did not remember how much shere was of it.
The books OF the Land Agent would, however,
show how much he had purchased and the
price paid.
The witness testified at length upon the coal
question giying history of the Black DIR
1nond Carbon Hill and Rocky Mountain Coal
Companies. He said he was a stockholder in
ali these corporations, which had paid 6iyi
d nds from time to time. The Pacific Trans
fer Company was organized BY Kennedy. Long
4 Co, who for awhile carried on the business
Kennedy, who was the head man in the con-
ce-n. got into trouble, and did not conduct his
affairs satisfactorily to the Central Paeiic. The
company was nov managed By Z. J. Coleman
and Mr.. Smith.
hr. Pattieon asked II Coleman was not a son-
ia-law OF ex-senator Gwin, aud II .t was not